Salary package set for new Commerce Authority CEO

The compensation package for the Arizona Commerce Authority’s new president and chief executive includes an annual salary of $250,000 and bonuses that could total $75,000.

The two-year package for Sandra Watson includes an annual “discretionary” bonus of up to 25 percent of her base salary, or $62,500. She could receive an additional 5 percent for “extraordinary results,” bringing the potential bonus to $75,000.

She will also receive a car allowance of $12,000 a year, five weeks of vacation and up to $10,000 for professional development.

The Commerce Authority’s executive committee approved the package unanimously Wednesday morning. Attorneys still need to work out final details before Gov. Jan Brewer signs it.

The contract does not need approval from the authority’s full board.

The meeting was held via conference call, and, after the compensation package was approved, Watson thanked Brewer and others for the opportunity.

“We are thrilled to have you on board,” Brewer said. “I think you will lead us into the future for Arizona, and we thank you for your willingness and that you are willing to lend your talents to the ACA.”

Watson is the Arizona Commerce Authority’s second president and CEO since its inception a little more than a year ago. She follows Don Cardon, who stepped down as chief executive June 30 to return to the private sector.

The proposed compensation is less than what Cardon earned in the same role, but it mirrors his package with its several bonuses.

Cardon earned a base salary of $300,000. His contract also included a similar “discretionary” bonus of up to 25 percent of his salary and a vehicle bonus of $1,000 a month. Unlike Watson, he received a health and wellness allowance of $30,000 a year as well as a $50,000 signing bonus.

Mary E. Peters, chair of the Commerce Authority’s compensation committee, said it evaluated similar CEO packages to set Watson’s compensation.

Peters acknowledged the committee did a similar compensation comparison for Cardon and attributed the differences in contracts to having a different set of eyes on them. She also said there “was a great deal of controversy associated” with Cardon’s signing bonus.

“We came up with a package that we thought was fair to Sandra but also conservative,” she said. “Sandra is very happy with the agreement and what we have put together for her.”

Cardon now oversees Team ACA, a private fundraising arm for the Commerce Authority. Team ACA funds were used to help pay back his signing bonus.

Peters, who served as U.S. secretary of Transportation from 2006 to 2009, said Team ACA money will not be used to fund Watson’s compensation.

“The bonuses will be paid out of public funds,” she said. “That’s another difference with this contract, perhaps.”

Arizona House Minority Leader Chad Campbell, who has questioned the relationship between the authority and Team ACA, said he believed the compensation was too high.

“This is too much money for the taxpayers to be footing the bill right now,” he said.

He said he was happy that Watson had been selected for the position, but he said given the potential size of the bonuses, her salary should be lower.

“This is probably better (for taxpayers) than the Cardon package,” he said. “But if we are talking about this much potential bonus money, then this base salary is way too high.”

As interim president and chief executive officer, Watson was paid $218,500. Before that, she earned $190,000 as the authority’s vice president and chief operating officer.

She spent more than 15 years with the Arizona Commerce Department, the predecessor of the public-private Arizona Commerce Authority.

The state spent about $77,000 on a national search before selecting Watson. The nominating committee interviewed five other candidates, four from Arizona.

Josh Brodesky covers the Arizona economy. Reach him at jbrodesky@republicmedia.com.

Posting a comment to our website allows you to join in on the conversation. Share your story and unique perspective with members of the azcentral.com community.

Comments posted via facebook:

► Join the Discussion

azcentral.com has switched to the Facebook comment system on its blogs. Existing blog comments will display, but new comments will only be accepted via the Facebook comment system. To begin commenting, you must be logged into an active personal account on Facebook. Once you're logged in, you will be able to comment. While we welcome you to join conversations, readers are responsible for their comments and abuse of this privilege will not be tolerated. We reserve the right, without warning or notification, to remove comments and block users judged to violate our Terms of Service and Rules of Engagement. Facebook comments FAQ

Join thousands of azcentral.com fans on Facebook and get the day's most popular and talked-about Valley news, sports, entertainment and more - right in your newsfeed. You'll see what others are saying about the hot topics of the day.